On Saturday, bitcoin was trading at $30,667, down 10.16 percent on the day. It was the biggest percentage drop in a single day since June 21. The most popular cryptocurrency has recovered to levels above $32,000. However, it appears that the upward trend was brief and not particularly delicious for investors. After over a year in a parabolic climb, the price of bitcoin is now in a decline.
Any decrease below the current level could result in a drop below the vital support level. If BTC/USD falls below the $30,000 support level, as it has already done, the coin can rely on long-term support levels of $28,000, $26,000, and $24,000.
Parabolic SAR Hints Bearish Price Sentiments
On monthly timescales, the latest selloff crossed the parabolic SAR, and in the past, when this happened, BTC plunged by 72 percent or more against the dollar. The post-SAR drop peaked at a startling 86 percent, which is quite close to the figures revealed by Brandt.
With the tool activated, Bitcoin is still at risk of falling below $20,000 or even lower, despite having experienced the lowest percentage decrease in history. Even at 84 percent, which is what happens when the parabola is broken, the top crypto asset might return to approximately $10,000.
Scott Minerd points out at Bitcoins Real bottom point
Bitcoin bulls should not rejoice just yet, according to Guggenheim CIO Scott Minerd, as $10,000 would be the digital asset’s “true bottom.” During an appearance on CNBC on Friday, Minerd expressed his thoughts. According to reports, his current uber-bearish aim is predicated on the current technical picture. He does agree, though, that his aim is a little “excessive,” and bulls should expect a price call of $15,000 instead.
Even if the next selloff is the lowest ever after such a signal, Bitcoin might still be on the verge of falling below $20,000. At $32k, BTC Price needs to build firm support. It would next have to break past the $34,000 pivot to support a run at the first big resistance level at $35,000.